Title
Request to authorize application for an Urban Land Assembly Loan through the Michigan Economic Development Corp. for the Devondale Property
Body
Whereas, Public Act 281 of 1986, as amended, 125.2151, Section 1 (g) states that "the creation of jobs and the promotion of economic growth stabilize and strengthen the tax bases upon which local units of government rely and that government programs to eliminate causes of unemployment, underemployment, and joblessness benefit local units of government and are for the use of those local units of government," and
Whereas, Public Act 281 of 1986, as amended, 125.2151, Section 1 (f) states "that the creation of jobs and the promotion of economic growth in the state are essential governmental functions and constitute essential public purposes," and
Whereas, Public Act 281 of 1986, as amended, 125.2152, Section 2 (aa)(ii) defines a "Public Facility" to mean 1 or more of the following: "the acquisition and disposal of land that is proposed or intended to be used in the development of eligible property or an interest in that land, demolition of structures, site preparation, and relocation costs," and
Whereas, Public Act 281 of 1986, as amended, 125.2152, Section 2 (p)(i), as summarized, defines eligible property as that real and personal property located within an authority district, of which the primary purpose and use is "the manufacture of goods or materials or the processing of goods or materials by physical or chemical change," and
Whereas, the Michigan Economic Development Corp. may provide to the City of Rochester Hills and the Rochester Hills Local Development Finance Authority a loan through the Urban Land Assembly Loan Program, and
Whereas, tax increment revenue from within the Rochester Hills Local Development Finance Authority district may be used as a mechanism to repay the loan, subject to a negotiated agreement between the City of Rochester Hills, the Rochester Hills Local Development Finance Authority and the Michigan Economic Development Corp., and
Whereas, the loan funds may be used to acquire land as permitted by Public Act 281 of 1986, as amended, as the board of the authority deems appropriate, and
Whereas, land acquired by an authority may be disposed of to benefit eligible uses, and
Whereas, an eligible use has been identified that fulfills the purposes of the Act as stated above, and
Whereas, the Rochester Hills Local Development Finance Authority recommends to the City Council of the City of Rochester Hills that it authorize the Mayor to apply for a State of Michigan Urban Land Assembly Loan through the Michigan Economic Development Corp. subject to a project, an eligible use, and demonstrated need
Be It Resolved that the Rochester Hills City Council authorizes the Mayor of Rochester Hills to apply for an Urban Land Assembly Loan, "the Loan," through the Michigan Economic Development Corp. subject to the following conditions:
1. An eligible use, "the Company", commits to develop land in the City of Rochester Hills
2. The Company agrees to sign a Development Agreement whereby it commits to remain in the City for a period of 12 years; and, should it relocate outside of the City, any abated taxes must be paid back and the land apportioned for its project paid for at fair market value
3. The Company shall pay a nominal fee for the land and the fee shall be determined by the Mayor of Rochester Hills
4. The Company must invest a minimum of $8-million in real and personal property improvements within the first two years of ownership from the date of the Development Agreement
5. In addition, the Company must invest at least $2-million in improvements within the first six years of ownership from the date of the Development Agreement
6. Neither the City nor any agency it has incorporated shall retain interest in any real or personal property to be located on land acquired by the Loan other than public facilities, as defined by Public Act 281 of 1986, as amended
Be It Further Resolved that the Planning and Development Department should provide a letter to the Company stating the above conditions no later than May 1, 2007.
Be It Finally Resolved that should the Company not accept the above conditions, the offer by the Michigan Economic Development Corp. for an Urban Land Assembly Loan shall be declined by the Mayor's office by written correspondence.
- OR -
Resolved that the City of Rochester Hills declines the offer by the Michigan Economic Development Corporation for an Urban Land Assembly Loan.